Authorities worldwide view CBDC as an instrument for enhancing the current fiat ecosystem, with crypto’s technical prowess backed by the central bank’s underlying trust is a primary factor for a rich monetary ecosystem. 

Specifically, “Digital technologies promise a bright future for the monetary system”, is reportedly what the publication stated, attributed to IMF deputy managing director Agustín Carstens and BIS executives Jon Frost and Hyun Song Shin.

Insights from a BIS research in June 2022 reportedly suggested that cryptocurrencies overperformed fiat ecosystems, in terms of achieving the high-level goals of a future monetary network.

A few of the top major flaws stopping present-day cryptocurrencies from hitting  mainstream adoption, as mentioned by the BIS execs, are bottleneck congestion in decentralized finance (DeFi) as well as the dependence on volatile assets.

Both wholesale and retail CBDCs can potentially inherit abilities from the crypto ecosystem that benefit end users. 

“By embracing the core of trust provided by central bank money, the private sector can adopt the best new technologies to foster a rich and diverse monetary ecosystem.”

It additionally issued suggestions for central banks to take advantage of innovations like tokenization to enable purchases via numerous fiat currencies – further benefiting merchants and customers.

The IMF’s gloomy forecast casting a prediction on an international economic slowdown raised concerns regarding an impending recession in the crypto markets. 

Previously, Bitcoin (BTC) markets faced tremendous hardship in its recovery process when the uncertainty about the existing state of the economy and geopolitical tensions are resolved.